Debt in retirement

My story is not unlike some on here in that I live alone, am still working part-time as I don't get my State Pension until I'm 66 (3 years to go!), and I took my small work pension when I was 55 along with voluntary redundancy as I was in a job I no longer enjoyed. I do also have a small pension from my late husband's company, which I am very grateful for as when you live on your own you have just as many bills as a couple but only one income to pay them with. I also downsized when I took redundancy as I was in a large semi-detached house which was expensive to maintain - unfortunately the move was not successful and very stressful as I ended up next to a noisy neighbour and moved back into a terraced home in the same road I had left 4 years later! Moving costs are not cheap but peace of mind is priceless!
I was widowed when I was 34 and consequently worked part-time from that point on as I had given birth to my only child just before my husband died. I have no regrets about that as I wanted to give that time to my daughter and once she was in her teens I increased my hours. However, working part-time means you have no chance to top up your pension contributions, especially if you are in a low to medium paid job, as there just isn't the extra money there to do so. I paid into a Local Government Pension Scheme and was advised to contract out for a period of time in my early working years - this has impacted on my State Pension considerably I believe, and I will not receive the full State Pension as I'd presumed. If only those who brought these schemes in had realised the full impact perhaps it wouldn't have happened. I also paid Additional Voluntary Contributions as I thought it would help me but these were with Equitable Life and we all know what happened there........ As a consequence I feel very distrustful of anything financial and have taken very little risk with my money ever since. I don't know what the future holds for me but at the moment I manage fairly well. I don't have expensive tastes/desires but I do nice things with friends and family that give me great pleasure (that can just be meeting for a coffee). That said I can't do what many of my friends with partners do and as someone else has said on here another salary/pension would be very useful! I'm probably anxious about retiring, even though some days at work it seems like a really good option (!), because I only have a small amount of savings and am worried about finding the funds for house repairs/replacement of things like my car, and household appliances. I am part of our local Waspi Group, fighting for transitional arrangements for those of us caught in the State Pension fiasco. I'm incensed that I will lose out on over £40,000 when I have worked for 47 years and expected to retire if I wished to at 60.
I think young people are not much different to how I felt when I was their age. I was lucky to be in a scheme from my 20's where there was no choice about contributing. Pension age is such a long way away when you are just starting out, you just don't realise how fast it comes round!

I hate to be the bearer of bad news but when Corbyn gets in he is going to double or even triple council tax. The idea is to crash the property market and oust we bedblocking home owners from our ‘ mansions’. It will be a double whammy, firstly we won’t be able to afford the property taxes and secondly when we are forced to sell up we will not get today’s price for our houses. If we can hold on by our fingertips he will allow us to ‘pay’ the council tax using equity from our houses so there is nothing to pass on to our children.

I retired from the NHS in 2010, my OH was on disability benefit at the time. By 2013 I had got us into a bit of a financial mess, I say I because I was the one who dealt with all the finances. After a lot of sleepless nights, and discussions with the bank, they advised me to contact a Debt Charity called STEP CHANGE. I duly made the phone call to them, feeling really stupid for getting in this situation at my time of life, but after a chat with one of their staff I felt tons better and that night slept properly for the first time in ages. We discussed how much we could afford to pay them each month and it was sent direct debit to them each month, they then paid our creditors on our behalf and it has been a joy to see the amounts owed going down each month on the statements.....with 2 creditors paid off in full.
I would urge anybody in debt of any kind, that they are finding difficult in paying to contact this organisation (Martin Lewis mentions them a lot on his TV show)

I’m find I am wishing my life away too craftynan DH and I had planned to retire together on our state pensions when he was 70 and I was 60 . We have had that snatched away from us now as I will have to work until I’m 68+ . How can he work in such a physically demanding job at 78 ? It’s not possible so I guess he’s right . We will both leave work in our coffins !

Nonnie - no, I’m not complaining and I know that I’m better off than a lot of people. I’m just fed up that my retirement is not turning out as envisaged with the loss of DH and the large ( to me) drop in income that is entirely due to my age. So many of us expected our state pension at 60, planned accordingly and are now wishing our lives away wanting to be 66 and better off. I know that I’m fortunate but still feel “ripped off”.

I'm with lostmyglassesxx. I got made redundant in my mid 50's have been unemployable as a result - my field does not employ over 50's and anything else tells me I'm over qualified I suppose they can't see an ex IT CIO from a big City company sticking at office admin or shelf filling... when interest rates were fine we'd have been OK - but just living in my home while we try to sell/downsize is exposing a £2 k a month shortfall to cover the community charge and energy bills all things we can't affect the rates of - and can't sell the house because there is a block of flats being built next door - we tried selling to the developer for another block - but they can't afford to over expose their investments at present. I have already cancelled everything else and shop at Aldi for £50 a week. How did the government imagine we would finance the gap?
Just saying you have to work longer doesn't make employers happy to employ you longer!!

By the time we retire officially we will be in debt. I have a pension at 67 my husband doesn't. My children are in the why contribute to a pensio. camp they have seen our contractual dates and projected incomes change several times and now prefer to rely on themselves regardless of tax relief, they like many of their generation will not be persuaded to trust long term and politically variable arrangements.... they had trouble enough with their student loans being retrospectively changed they believe any pensions their in will be too.
However if I can get out of this house in the next year we may be able to preserve something.

maggiemay, we have a holiday home in France, and yes, fuel prices, especially electricity, are much higher in France. We live out in the country with a house heated by electricity and a wood stove. Our electricity bills can be as high as nearly £100 a week. Fortunately, as it is a holiday home are only over there a week or so at a time.

Dharmacat will correct me if necessary, but she is unlikely to be using gas off a gas grid as most of us do in the UK. The French gas grid rarely goes outside conurbations. She will be using Calor gas or equivalent and, as many an off grid country dweller in the UK will tell you, that is an extremely expensive way to heat your house.

If we lose reciprocal agreements re health care- that will be another £500 a month to have to pay ...

The fear of even greater exchange rate fluctuation due to Brexit is real for many of us. None of us who moved abroad were stupid to think there could never be fluctuations- but for us, it has meant a loss of 50% of income- and last year, after the vote, 60%.

Exchange rates are now kept artificially high by all sorts of mechanisms- but if things take a turn for the worse- few of us will be able to keep heads above disaster.

Many on GN have no idea how much pressure it puts on people who did make very sensible plans- I know some have absolutely NO sympathy whatsoever.

We have never been in debt- but I do remember very tense times- when we overstretched ourselves on our move from Staffs to Leics- just as second baby was arriving- and then the mortgage rate going up to 19.5% - and hugely expensive life-insurance cover to cover OH's pre-existing conditions. Scary times.

Dharmacat what on earth will happen when you can no longer drive any more?

I have Macular degeneration and I expect to lose my driving licence when my eyes are tested later this year. I live within a 6 minute walk for somebody without a disability to a bus stop whereas it takes me 15 minutes.

I'm aghast at your fuel bills, Dharmacat! Are they usually so high in France? We only pay £75 a month for both gas and electricity and don't stint on either - neither of us can stand the cold so the heating goes on before we get up at this time of year. And as you say, it's warmer over there!

Life is not equal or fair as many have pointed out and sometimes hard work does not equate with just rewards.
I am not "moaning" but just stating that, however carefully one plans and saves, external factors can sweep away some/all of the security and certainty. At 75 years of age my husband and I did not expect to have to start counting the pennies again.
Eight years ago as a widow I married a widower; we both received reasonable private pensions and full state pensions.
Did the maths, took account of a 10-15% fluctuation in exchange rates ,paid for legal and financial advice and re-located to France expecting to live comfortably, although not new cars and long-haul holidays. Our house is a medium sized village house with a small walled garden - not a chateau with rolling acres.
Since June 2016 the plummeting exchange rate (thank you Brexit) has wiped 30% off our pensions - our only income.
We will adjust as we are, like so many of The Grans, of a generation who can budget, cook from scratch, buy in the Sales and not incur debt. However, our gas fuel has now increased to 600 euros (six HUNDRED) per month , electricity 120 euros insurances (including health) to 316 euros and local taxes 270. This is before food etc.
We had hoped to have some inexpensive European holidays and we will need to have one more change of car - essential in our rural area as no buses.
We are more fortunate than many of you and when the sun shines it is glorious around here and I must now tell myself that living in SW France is a holiday every day!
My heart goes out to those of you who have, through circumstance , to endure a far more frugal retirement.

I think it's easier to shop for cheaper weekly food shopping now than ever before. Aldi and Lidl have brought significant competition to the major supermarkets and have driven prices down. Savvy shopping has never been easier imo.

I’ve seen my bills go down by lots of judicial switching of energy, banks, internet provider, etc..

Please someone explain where the 25% increase in bills comes from. When is that compared to?

golden age I'm another who isn't dealing with 25%/increases in bills.
I voted remain and still see Brexit as a huge mistake but there is no way I'd blame your problems entirely on the outcome of the referendum.
I also object to blanket stereotyping of the older squad who stuck their heads in the sand and voted leave.
I certainly didn't and the same can be said of many posters on GN.
It's a big mistake to conflate the issues and by doing so you lose credibility.

Hi Maggiemaybe thanks yes I did realise that about tax I have looked into it and spoken to pensionwise, I have worked as a lawyer for charities for many years so my salary is not typical for the profession but is in line with civil service pay scales this means I am having to think creatively about my investments and about the best way to generate a steady income to go with my state pension. I have a financial adviser too and feel that in my case it’s a sensible option

crafty I do realise you are not complaining but to get any pension at all after not contributing is something most of us coul never dream of. Presumably it is also index-linked which almost no one in the private sector has.

sarahhelen social housing certainly wasn't easier where we lived in the 60s and 70s, in two different parts of the country. As I have already said you had to be on the list for years and have a couple of children to earn enough points to be considered for a council property. It is easier now imo.

When our first child was born, no nurseries in those days, DH commuted an hour to and from his demanding job and took on a pools round as well to help pay the bills. That was when our mortgage interest was over the 15% often talked about. We have had it hard at times but always thought we would retire one day and made the appropriate sacrifices. He still worries about money now.

I am 62 .worked in the fashion businsss successfully and well,paid all my life ..now,unemployable ..totally age related .my skills are there as I have been doing some short term consultancy .I tick all the boxes but age is a deterrent so I am confronted with a deferred state pension and no discernible income..even unskilled work is hard to come by where I live in the country .my partner had his own business but not reaping any significant financial rewards and wound it down and been managing another business ..now abruptly curtailed by seriousillness but with no company pension pot ..just an income abruptly stopped.
I have a single mother daughter making financial demands because she has no income.
Credit cards are being juggled .luckily we own our home so equity canbe released
I can’t believe I have gone from a fairly comfortable independent lifestyle to a situation where I am facing financial stress. I did not anticipate financial insecurity..or being unemployed and by default retired or partner having a seizure that’s rendered him unable to continue his job.
hindsight is a wonderful thing, Care Home fees are terrifying by the way.I am managing my mums financial affairs as she is ina Care Home £5500 per month ,,! I will not be able to afford that.
Unless you have a big fat pension pot or are rich you are going to have financial crises as you get older ...I have never been extravagant or foolish with money but I have never been able to save as I always was forking out for something for somebody else in the family.. or some unexpected expense.any savings I had have been spent!
I have a small company pension of 400 a month andthats it.
We woman who cannot claim our pensions till65 have been cheated out of £ 39000 by my calculation ..ggggrrrr ....

My OH paid into a private pension for years as the government advised he should, but that all went pear shaped and he had to scrabble around putting away what he could to make up the short fall from what he expected to get once retired. Of course he wasn't the only one. How can you plan for the future with some many uncertainties?

Mine neither, kittylester.

jenpax, you probably already know this, so forgive me it it looks as if I'm trying to teach a Gransnetter to suck eggs! But just in case, and for others who may not have realised it, when you withdraw money from your pension pot you only get the first 25% tax free and have to pay tax on the rest. The trouble is, if you withdraw a large amount in one go, it will count as income for that one particular year, so you could end up in a high tax band, losing a lot of it.

Golden age, I don't know what you buy or where you shop but my bills haven't risen by 25%!

I am almost seventy and last year had to get a part time job in a cafe to make ends meet. When I was married I had nice homes (decorated and renovated by me!) but after a few disasters I have now ended up in a rental house I can hardly afford. I feel fairly bitter and twisted (!!!!) that it's come to this and keep trying to fathom out where it went wrong! I am becoming more and more concerned that the little bit of savings I have are being eaten away month by month just to keep my head above water! I suppose it's too late to die young!!!!!!!!!

The above for keffie.